16 May 2024 - Online Biz Acquisition Opps

Health & Vitamins Biz Kinda Week

Hey Hey Peeps! This week we got a few businesses in the health vertical.

There are some others, but I am going to put those in an email for tomorrow. Stay tuned.

Personally in my business world… well let’s just say the outbound sales team efforts for one of business has been giving me grey hairs.

Let’s jump into it!

100% Remote Botanical Supplements Ecommerce Business

💰 Asking Price: $2,738,000
💼 Cash Flow: $781,939
📊 Gross Revenue: $2,963,732
📅 Established: 2020

This botanical supplements ecommerce business, established in 2020, operates 100% remotely. Not SBA eligible due to its Canadian base, the company utilizes a 3PL for fulfillment and sells exclusively through its Shopify website. With only five SKUs, the product line is simple and easy to manage compared to other ecommerce businesses with dozens or hundreds of products.

The business has a massive social media following, even larger than Pepsi’s, which is intriguing given their $2.9 million in sales. This suggests there might be untapped potential in converting their social media audience into more sales. Expanding to other ecommerce marketplaces could also drive revenue growth.

One important aspect to consider is their reliance on a single manufacturer located in the same state as their 3PL. Exploring alternative manufacturers could be beneficial to mitigate risks associated with this dependency.

Understanding what is currently driving their sales is crucial. Given their high margins, it’s worth examining if their revenue is primarily driven by paid ads and whether their social media audience converts well.

Established E-Commerce Vitamin & Supplement Retailer

💰 Asking Price: $890,000
💼 Cash Flow: $225,914
📊 Gross Revenue: $933,519
📅 Established: 1998

This e-commerce business, established in 1998, specializes in vitamins and supplements and operates with over 700 active subscribers on auto-ship. With 30,000 SKUs, it's clear this is a pure reseller rather than a brand, likely relying on drop shipping given it only has one employee. The high margins are notable for a drop ship model.

The customer base is built through SEO and Google AdWords. It's crucial to understand the split between these channels since SEO dependency can be risky. If AdWords drives substantial, profitable traffic, there's potential to expand advertising to other platforms.

Despite 25+ years in business and only one employee, this business is streamlined and efficient. The current owner occasionally handles technical aspects, ensuring smooth operations.

Given its strong recurring revenue model and growth potential, this could be a great opportunity for the right buyer, especially if they can diversify and expand advertising strategies.

SBA Prequalified, Absentee-Owned Online Outsourcing Agency

💰 Asking Price: $2,360,000
💼 Cash Flow: $674,148
📊 Gross Income: $1,748,334
📅 Established: 2017

Is this really an online business?

High margins, an economically resilient industry, and sticky clients caught my eye. Plus, it's listed by WebsiteClosers, known for online businesses.

At first glance, it seemed promising, but as I dig deeper, it appears to be a traditional senior care business with an admin layer to manage operations. The senior care sector can come with numerous headaches, including staffing issues, theft, and dealing with unhappy family members. I'm not convinced this qualifies as an online business.

If I were to consider this deal, I’d need to verify the solidity of the admin staff and understand the seller's actual involvement. For those interested in the medical/homecare market, it might still be worth requesting the CIM.

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